PM Modi announces $13.5 billion semiconductor push, highlights 3,000-km freight corridor milestone

Prime Minister Narendra Modi on Thursday announced a $13.5 billion target for the second phase of India’s semiconductor mission, while pointing to the recent operationalisation of around 3,000 kilometres of Dedicated Freight Corridor as evidence of the country’s expanding industrial and logistics infrastructure.

Speaking at SEMICON India 2026 at the Yashobhoomi Convention Centre in New Delhi, Modi said the first phase of India’s semiconductor mission was valued at around $8 billion. The government has now set a higher target for the second phase as it seeks to deepen the country’s semiconductor ecosystem.

The announcement was part of a wider account of recent developments that Modi said reflected the pace of India’s economic expansion, including reforms in the semiconductor sector, new technology initiatives, freight infrastructure and a 7.8% quarterly GDP growth rate.

India raises semiconductor mission target to $13.5 billion

Modi said India has entered the second phase of its semiconductor mission with a target of $13.5 billion, up from the approximately $8 billion value attached to the first phase.

He also announced changes aimed at expanding collaboration within the sector. Under the new reforms, international companies can collaborate with Indian startups, Indian design firms and OCI-owned entities, he said.

The government is also working across policy, funding and regulation to support semiconductor projects, according to Modi.

He described the changes as part of the government’s “Reform Express”, saying further reforms had been introduced to help the sector move forward.

3,000 km of Dedicated Freight Corridor becomes operational

Modi also highlighted developments outside the semiconductor sector to illustrate what he described as the speed of India’s economic and infrastructure growth.

He said around 3,000 kilometres of the Dedicated Freight Corridor became fully operational during September.

According to the prime minister, the development will improve the movement of goods across the country, strengthen logistics and provide further support to manufacturing.

Modi linked the expansion of freight infrastructure with India’s broader manufacturing ambitions, placing it alongside the country’s push in semiconductors and technology.

Modi cites 7.8% GDP growth

The prime minister also referred to India’s latest quarterly GDP report, saying the country recorded 7.8% growth despite what he described as a challenging period.

He grouped the GDP figure with developments in financial technology and infrastructure to highlight the pace of change taking place across different parts of the economy.

Modi pointed to the Global FinTech Fest in Mumbai, held 10 days earlier, where discussions included inclusive finance using Agentic AI, tokenisation and quantum technology.

Taken together, Modi said the developments of September offer an indication of the direction and pace of India’s progress.

SEMICON India 2026 focuses on semiconductor ecosystem

The announcements came during the fifth edition of SEMICON India 2026, a three-day national convention focused on India’s semiconductor and electronics ecosystem.

The event is being held from September 17 to 19 at the Yashobhoomi Convention Centre in Delhi under the theme “Silicon to Systems: Building the Ecosystem.”

Modi also connected the government’s semiconductor and manufacturing push with the launch of the PM Vishwakarma scheme on Vishwakarma Jayanti, describing it as a combination of India’s traditional culture of creation and construction with modern technology and a vision for a self-reliant, developed country.

With agency inputs